In a stunning ruling that could revolutionize a college sports industry worth billions of dollars and have dramatic repercussions at schools coast to coast, a federal agency said Wednesday that football players at Northwestern University can create the nation's first union of college athletes.

The decision by a regional director of the National Labor Relations Board answered the question at the heart of the debate over the unionization bid: Do football players who receive full scholarships to the Big Ten school qualify as employees under federal law and therefore can legally unionize?

Peter Sung Ohr, the NLRB regional director, said in a 24-page decision that the players "fall squarely" within the broad definition of employee. Pro-union activists cheered as they learned of the ruling.

"It's like preparing so long for a big game and then when you win - it is pure joy," said former UCLA linebacker Ramogi Huma, the designated president of Northwestern's would-be football players' union.

An employee is regarded by law as someone who, among other things, receives compensation for a service and is under the strict, direct control of managers. In the case of the Northwestern players, coaches are the managers and scholarships are a form of compensation, Ohr concluded.

The Evanston, Ill., university argued that college athletes, as students, do not fit in the same category as factory workers, truck drivers and other unionized workers. The school announced plans to appeal to labor authorities in Washington, D.C.

Alan Cubbage, Northwestern's vice president for university relations, said in a statement that while the school respects "the NLRB process and the regional director's opinion, we disagree with it."

The specific goals of the College Athletes Players Association include guaranteeing coverage of sports-related medical expenses for current and former players, reducing head injuries and potentially letting players pursue commercial sponsorships.